JP Morgan: MENGNIU DAIRY (02319) sees a turnaround in sales and profit this year, maintaining a "buy" rating.

JPMorgan Chase released a research report stating that it maintained a "hold" rating on MENGNIU DAIRY (02319), expecting strong Lunar New Year sales this year to serve as a short-term catalyst. The bank expects sales and adjusted profits to increase by 2% and 17% respectively compared to last year. It believes that the competitive environment this year will be more benign, despite overall moderate demand and competition from other beverage categories such as coffee and tea. The company is actively optimizing its product portfolio and expanding into new channels to regain market share.